Both the level of volatility, and the volatility of volatility, as measured by the 20-day standard deviation of changes in the VIX, are near the lows for the year. Further, we’ve just witnessed the first month of outflows from Managed Futures mutual funds in a couple of years. The category, largely made up of trend followers, is often counted on to provide “crisis alpha”, so net redemptions would seem to suggest that “crisis” isn’t a word on anyone’s mind. While we too are constructive on the current market, we can’t help but think that when hope inevitably gives way to the inconvenient realities associated with trying to effect change, that investors may wish they’d gone a bit lighter on the optimism, instead adhering to Buffett’s mantra of being fearful when others are greedy.